A warm welcome to the pulse, live from london. I manus cranny. Rwe and eon have soared in frankfurt street this morning as the German Economy minister says the countrys Utility Companies have enough funds to pay for the decommissioning of nuclear plants. Hunt nichols is standing by in berlin. Hans, this has been one of the theseppressive issues on for quite some time, so this is a relief. Hans it is a relief but it doesnt mean the utilities are out of the woods. Yes, you see the stocks up over 10 , but when you look at where they are on the year, eon is down 36 and rwe is down almost 36 . These stocks have taken a battering. What theyve learned today is that their provisions along with another three companies, the 38 billion they have set aside to decommission their power plants, is going to be sufficient. That is according to the economy minister, sigmar gabriel. Heres what he said in a statement moments ago. Considered scenarios of high provisions improbable. He was referencing a range between 25 an 25 billion euros and 77 billion euros. On the outer and the economy minister is saying it is not likely to be triggered and all the stress test they are running, they think they will be in the middle of the range. The company said that these highly improbable stress tests werent very realistic. They put out a statement saying that some scenarios are unrealistic and has never been used in any sector. This gives them some breathing room, a chance to make the transition toward renewable by no means will be easy. We spent the last nine months talking about greece and syriza, then on refugees. Recently we spent a lot of time on the volkswagen scandal. It bears remembering that germany is going through a massive transition. 2022 is when they want to be free of Nuclear Power. Theyre big transfer payments could potentially hurt the industry there is a lot of concern, and consumers are also paying, needing upgrades to their great, how to get their energy. Manus hans, thank you very much for the update. Hans nichols in berlin. Lets talk central banks. The Federal Reserves vicechairman Stanley Fischer says the u. S. Economy may be Strong Enough to warrant in interestrate increase by the end of the year. He says that as the open market committees meeting comes toward near september. Most participants, myself included, anticipate that in achieving these conditions would data an increase in the federal funds rate later this year. Of course, the assessment was premised on the assumption of continued solid Economic Growth and further improvement in the labor market, which are key factors supporting our expectation that inflation will rise to 2 objective. Meanwhile, speaking to our very own Francine Lacqua in an exclusive interview, jeanclaude trichet said that he trusts janet yellen and the fomc. I have full confidence in the open market, in janet, in all the members of the market committee, to take the right decision. They have the information, they know well what it is about. I trust them. I will not make my own guess. Manus [laughter] lets bring in alberto gallo. Great to see you this monday morning. A lot to get through. The International Voice on the fed, Stanley Fischer, saying it is very much in play, rate hike for 2015. Alberto but dont believe that. [laughter] albert i think investors are tired of seeing it denied over and over. We think the fed missed the boat. The economy is still growing, but at a slower pace. Risks to theare Banking Systems from emerging market. The u. S. Banks and also u. S. Bond markets have in lending a lot. There is now a deeper risk that the chinas slowdown will affect other countries. Debt,about yendollar around 10 of the u. S. Market. Manus you said they missed the boat. Wirp, that function on bloomberg october, 10 . Christmas, 40 . It, orey really missed do you join the camp that they delay substantially . Willto we think they remain substantially into 2016. For what we need to think about is the inflation target, 2 , is very hard to achieve for structural regions. That changes in the labor markets, there is more ,rioritization of jobs highpaying i. T. Jobs and those that work in real estate and construction, which are temporary salaries and jobs. It is very hard to get to 2 for structural reasons. They are using structural tools to fight structural issues and that will not work. But they cannot say that they have to say it will work, but the problems are structural. Manus and when it comes to facing the headwinds you mentioned the chinese. Last week, the imf warned on global growth. He wrote a piece this morning which talks about credit. Your domain, which is take all of these issues in the commodity market and the crunch going on, and you are taking jobs and credit. Wrap that up for me in terms of your perspective. Alberto basically, our view is that over the last 10 years we created an overhang of debt, especially in emerging markets, which are 3 4 of credit creation. We accumulated also an overhang of industrial capacity, which resulted in two a large Real Estate Investment and Industrial Investment that are not used anymore it is very hard to we nowe can again have to shift to a different growth model. It is going to be very hard and it will take a long time. Stuck in aare community of very low Interest Rates, potentially qe for even a longer time. Manus lets delve a little bit into that. Mario draghi is saying qe is working, better than expected. Are you saying qe infinity ecb or qe infinity from the Federal Reserve . Alberto in the u. S. , we will see probably a few rate hikes last year. In the last few years we could see a slowdown. In the eurozone, we have definitely averted the worstcase scenario, but it is not sufficient for a recovery. We have a whatever it takes impetus, but without reforms, this is petering out. It is whatever it takes. Manus i think we packed a lot in, in terms of credit perspective. Alberto gallo. Heres a look at what else is on our radar on the the pulse. Sell to intends to copper mines, one in australia and one in chile, adding to the planned to cut 10 billion after Commodity Prices plunged. The move comes after the company said that it has received a number of unsolicited it russians of interest for the mines. Dell will announce today that it is acquiring emc. The deal would create a corporate computing giant in the largest ever technology merger. Turkey has buried the first victims of a twin bombing, werent over 90 people died. Where over 90 people died. It is still not known who carried out the attacks, which hit a march calling for peace. Again after the head of opec said that demand will grow and supply will contract a perfect situation. Qatars Energy Minister thinks the prices have bottomed out and says there are signs of recovery in 2016. The global oversupply set prices down over the past 12 months. To keep the u. K. In the eu launches today under the banner of britain is stronger in europe. Leader of the campaign has rebutted claims that it will be a patriotic course for written to withdraw. Other backers include a baroness, lord sainsbury, and lord mandelson. What is up next . Commodities, of course, and the crunch ahead of copper. Warns that hedge funds are playing a dangerous game with prices. Here are exclusive interview, next. Manus welcome back to the pulse, streaming on bloomberg. Com. Glencore, never far from a news line. It is to start the process of selling copper mines in australia and chile after receiving a number of unsolicited expressions of in addition to a plan to cut their debt by 10 billion in the wake of falling Commodity Prices who else do want to talk to . 2 billion worth of additional sales. It is unsolicited invitations. Just to be clear, the asset sales, previously 2 billion, that did not include these copper mines we heard about today. Previously those talks about precious metals, this agricultural unit. Today, we now hear there is a bit of a surprise, that they are looking to sell to copper mines. Glencores line is that these were unsolicited approaches. In terms of the context of global copper mines, not terribly significant, but they are interesting nonetheless. Manus this is not a good time anye selling metal by stretch of the imagination, whether you are pimco at the bottom or goldman sachs. This is a tough time to sell assets. Is there an appetite for copper . Jesse it is definitely not a thet time to be selling price of copper for years ago was at a record and today we are at half of it. Copper definitely has a more bullish outlook than other commodities, much more positive than others. A major copper miner recently sold for 300 million in cash. We have had some analysts come out today saying that based on those asset sales, they could achieve thia a similar price. An unexpected positive if they get a good price. Manus i have written down here there are a couple interesting things. In the background doing other deals in the asset space. Yet the names, do we know yet who might be interested, in terms of the glencore . Mplexion for this is just one piece of the very big jigsaw of convincing the market they have a handle. Jesse there was a copper mine in australia that would probably include the company there. They are looking at acquisitions. In south america, private equity firms are still crawling over south america for copper assets. There is definitely appetite for copper. Manus well, they have to negotiate without ivan klassen berg. Thank you very much. Lets move it along and talk hedge funds they are betting that comparable drop further, and if they are, they are playing a very dangerous game with prices. That is according to the head of copper at rio tinto, the worlds secondbiggest mining company. It has lost more than 40 of its value since 2011. Speaking to jonathan ferro, they said that shortsellers should beware. Today we copper space, are not trading on fundamentals. I think one good example is there are lots of shorts and copper. We see the pickup in terms of shortselling copper. Toyou remember, they decided change the rules in relation to the equity market, where people were no longer authorized to short sell. Therefore what we have experienced is a series of players in the marketplace that use copper as a proxy for the chinese economy and started to short sell. Today, if you were to look at look the price is, if you where prices are compared to the previous year, there is something that doesnt stack up. The said, we believe that series of players in the marketplace which are using copper as a proxy for the general chinese economy are therefore taking some position. It could be a very dangerous game in the medium and longterm, because at some stage we expect the Copper Market to go into a deficit, and you dont want a short position jonathan so the question is how long do you think it will take for that process to shake out, the supply demand fundamentals . I hope that in the next two to three years, we move back into a deficit position, and we enjoy a more formal type of context. Copper and iron ore dominated by one buyer copper. It is 40 of china. Does that concern you in any way, at a time when people are so bearish on china . And the question if i can read through China Companies via the official data how were you seeing china . We are not concerned about chinas. As you said, china accounts for more than 40 of the copper consumption. But remember, there are new mines in mongolia, in copper trade with china. Do have problems in china today . No. When i look at my customer in china, do they have issues raising credit . All the business we are doingn in china is based on credit no. We had a concern a year ago. But today, as we are having this conversation, im not concerned. All this comes as Mining Executives and ambassadors gather for the annual conference, the london metal exchange, with bloomberg commodities index off 12 already this year, attendees will be looking at 2016 and hoping it brings Better Things for the mental sector. Our chief Energy Correspondent is here. Your invitation box runneth over for lme. How down, how depressed are the middle traders . This must be one of the worst environments since the financial crisis began. Javier it is. Tradersooks for some even worse than the financial crisis for one reason. In 20082009, everyone had the hope and it happened Chinese Government delivered. Now they are doubting that beijing will be able to stabilize the situation, and for the first time in 20, 25 years, it is happening here in london with the prospect and maybe it is remote that china may be that is a spooky manus there was a great story a great deal of agreement of the premium that is going to be had of these commodities. These conversations set the template for pricing. This is a big copper producer set to shave the premium. We are already seeing the reality of the slow down, and are there any bulls at this conference . Who are they . Glassenberg, that is a big bowl. The other one is goldman sachs. Glencore is really talking up the market, cutting production to try and move prices higher. Goldman sachs is really negative. But they are signaling that there is a 20 reduction on copper premiums, a sign that there is a lot of copper supply out there. The market doesnt look like it will rally. There was a discussion where we have seen the bottom in few people think we will go significantly below current level, but no one sees a big rally in the next few months. An executive from rio tinto if i have to think about what wedo on day one of lme, probably need to wait another few years before we see metal prices rise. Manus we may still be in that same marketplace. What is the hottest ticket to have four lme week . Javier there are many events but one that i like every year dnesday, the intercontinental in mayfair. Manus can mayor plus one . And i your plus one . Javier absolutely. Manus now, the largest ever tech merger could be announced later today. Dell is planning to pay 33 per share for the data storage provider emc. Caroline hyde has the details. This comes, it will be a beltre. Caroline it will be a juicy price tag. More than 60 billion for the data storage company. An 18 premium above where the share prices grilli trading. But it is a, kate a deal. You have to get the nuts and bolts of it. We understand that there is a 25 price in terms of cash that could go up to 27. But just over 25 is what our sources have been telling us. But there is a new security being formed, the socalled collar, a way of protecting the sellers from big fluctuations in price, 88 for vmware. That is a Software Provider that is controlled i emc. It helps run your software more efficiently on storage and networks and servers, and it is controlled. Therefore we see a little bit more complexity. Is all of this complexity trying to soothe one key investor, one key activist investor, elliott management, who has been trying to push for emc to split itself up and create more value. Lets have a look at what value it brings to dell. Two years ago it took itself private to do exactly this, to come away from the glare of shareholders, to be able to restructure itself, to reset itself or purpose in a new technology ecosystem. Michael dell and silver lak e made the company ofvate, so what is to become hewlettpackard and ibm . They could give them a run for their money to become one of the biggest providers in the enterprises computing products. Dell already has a software and i. T. Services. Indeed, the servers. But with this, it adds a storage. There are challenges, and this is whats going to become interesting how they finance the deal. Could they really afford more than 60 billion . They will have to raise money to get 40 billion, but that is highyield. We are seeing a bit of a drying up in the highyield market. So that is what the banks will be considering. On the other asset class is emc. I am sure we will see a pop in emc shares later today, but what about the bonds . They have been falling and they are worried that they will be lower. The debt. R meanwhile, there is a report that there could be a shot provision, maybe 60 days, and emc could loom or in other buyers to get a better price tag. Interesting to see where the final price will be. Manus thank you. We will see what news comes later in the day. Still to come, the campaign to remain. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Pulse echo. We are live from bloomberg in london. The Federal Reserve vice chairman says the u. S. Economy maybe Strong Enough to merit an Interest Rate increase by the end of the year. He cautioned that policymakers are monitoring slower domestic jobs growth and International Developments as they decide the precise timing. Glencore is selling to copper mines. Are seen Commodity Prices plunge. They have received unsolicited expressions of interest from various mine buyers. It dmc. Acquiring the deal would create a corporate commuting computing giant in the largest ever Community Technology merger. Lets get a update. Mark again is again. A nineday stretch is the best since february. Take a look at the shanghai copper. This is a 2015 chart. The index is up 3. 3 . Got export data and Consumer Price data on tuesday. The hope is they will be further rate increases from the bank of china. In might be deductions this is absolutely nothing it to the dollar. He paved the way for another rates hike in the u. S. This year. He joins another number of fed officials since the september meeting. The dollar is down for the third day last week. The dollar had its worst week since june. Ive done it barriers for all of last week. This